Wheaton taxpayers face a projected $720,767 shortfall in the city's 2027 General Fund, and the City Council will get its first look at the numbers Monday, Aug. 24, at 7 p.m. in Council Chambers.

The gap is driven largely by $2.1 million in new annual debt payments tied to a $30 million bond for the Police Station Renovation and Fire Station #39 Replacement Project, which the council directed staff to pursue at its May 11 planning session. Health insurance costs are projected to jump 16.9%, or $800,000, and property and casualty insurance is expected to rise 18.2%.

The 2027 outlook contrasts with 2026, which is on track to finish $1.6 million in the black on revenues of $59.75 million against expenditures of $58.19 million.

Director of Finance Robert R. Lehnhardt laid out the challenge in a budget memo prepared for Monday's session, noting that inflation, supply chain disruptions and rising energy prices have eroded the city's operating position. Expenditures of $61.3 million would outpace projected revenues of $60.6 million without corrective action.

On the revenue side, sales tax collections are expected to grow $1.4 million (7.2%) thanks to a full year under the local sales tax rate increase from 1.00% to 1.25% that took effect July 1, 2026. Property taxes, however, are projected to dip $200,000 assuming the council holds the 2026 levy flat. The city held its property tax levy flat for six consecutive years before a $600,000 increase in 2026 to support the police and fire station debt.

The Capital Projects Fund, which pays for roads, sidewalks and bridges, will be depleted by the end of 2027 without a new dedicated revenue source, according to the memo. One-time federal money that had propped up the fund — $4.9 million in American Rescue Plan Act dollars among $5.7 million in grants since 2021 — is exhausted.

Wheaton's unrestricted General Fund reserve is projected at $24.6 million at the end of 2027, just $100,000 above the city's 40% reserve policy floor. The city holds a AAA credit rating from Standard & Poor's, a distinction shared by only 20 Illinois municipalities.

Staff is asking the council, led by Mayor Philip J. Suess, for direction on how to close the structural gap and identify dedicated capital funding. The recently approved Axon police technology contract adds $400,000 annually to the 2027 budget.

Key dates ahead: a preliminary property tax levy estimate is due Oct. 26, the draft budget goes to council Oct. 30, a budget workshop is set for Nov. 9, and the public hearing and adoption votes are scheduled for Dec. 14 and Dec. 21.

Residents can attend Monday's session in person at 303 W. Wesley St., join via Zoom (registration required through the city's agenda page), or email comments to [email protected] before 5 p.m. Aug. 24.